Breakfast News: Is AI A "Datadog-Killer"?

Breakfast News: Is AI A “Datadog-Killer”?

February 24, 2026

Source: Image created by Jester AI.

1. Datadog Dips 11% on Anthropic AI Tool

Recommended by Team Rule Breakers in Stock Advisor, **Datadog **(DDOG +2.40%) closed down 11% yesterday after Anthropic’s new feature – Claude Code Security – prompted fears of further AI disruption to related cybersecurity stocks.

• **“It scans codebases for security vulnerabilities and suggests targeted software patches”: **Anthropic described the new coding capability as coming at a “pivotal time for cybersecurity,” with the feature building on more than a year of research.
• “The market is sniffing out ghosts, but we see a fire sale on a best-in-class platform”: Fool analyst Sanmeet Deo dispelled some fears, noting “while the market treats AI like a “Datadog-killer,” the numbers tell a different story: 25% year-over-year revenue growth and a sticky customer base with a 110%+ net retention rate.”

2. Days Like Monday Are Merely a Blip on the Radar

My portfolio, too, makes for an ugly sight with lots of crimson red across the board. I remember when that happened last year after “Liberation Day,” only for the market to engineer a vigorous rebound. I also remember the post-Covid bear market, the taper tantrum, the Great Financial Crisis and the dot-com bubble. Each one of them caused investors to fear the worst, and at times run for the hills. Yet, staying invested has invariably proven to be the wisest course of action. The temptation of selling high and buying low often leads to poor timing decisions, including missing on the biggest “rebound” days in the market.

3. Tuesday’s News From Dividend Investor Recs

• **Whirlpool **(WHR 2.45%) fell over 7% ahead of the opening bell after announcing an $800 million dilutive stock offering, with some of the proceeds raised going toward paying down credit facilities and deleveraging the business.
• **Home Depot **(HD 1.05%) rose 4% before the market opened, with the dividend increased despite a 3.8% fall in revenue. The results beat expectations, with CFO Richard McPhail noting “the homeowner is one of the healthiest customer cohorts out there, but they tell us that uncertainty is growing.”
• **Realty Income **(O 0.31%) posts quarterly earnings after the market closes. Last time, the business raised the dividend for the 132nd time as a public company, as it pushes for continued high occupancy rates.

4. Post-Market Rule Breakers Earnings

• **Workday **(WDAY 0.18%) will be aiming to build on the strong subscription revenue growth evident from last quarter, with the company beating revenue and earnings per share estimates every time for the past two years.
• **Axon Enterprise **(AXON +0.47%) completed key acquisitions in the previous quarter, so investors will be closely watching how well initial integration is playing out. The stock is beating the S&P 500 by 23% since the November 2021 rec.
• **Globus Medical **(GMED 2.03%) raised full-year revenue and earnings outlook last quarter, with further progress expected as demand for musculoskeletal implants and solutions keeps increasing.

5. Your Take

Commenting on Datadog, Sanmeet gave further words of wisdom: “When fear overshoots the fundamentals, Fools go shopping.”

When have you been greedy when others were fearful over the years? How has it worked out for you?

Share with friends and family, or become a member to hear what your fellow Fools are saying!